Dow Jones Industrial Average Futures Stutter Despite Oil, Apple Rally

'Transformative' Drug Data; Plus, ''The Most Irrelevant Retailer Out There'

May 16, 2016 at 9:10 AM
facebook twitter linkedin

Dow Jones Industrial Average ​​(DJIA) futures are trading just below fair value, following stocks' dismal performance last week. An unexpected plunge in the Empire State manufacturing index and dismal data out of China are overshadowing a Warren Buffett-inspired boost for Dow stock Apple Inc. (NASDAQ:AAPL), as well as rising oil prices. June-dated crude futures were last seen 2.3% higher at $47.26 per barrel, after Goldman Sachs raised its 2016 price target for crude oil, saying there's now a deficit in the market, with fresh production issues out of Nigeria providing an additional lift.  

Continue reading for more on today's market, including:

U.S. stock futures May 16_

Futures on the Dow Jones Industrial Average (DJIA) are 1.3 points below fair value. 

5 Things You Need to Know Today

  1. Asian stocks overcame China's dismal data, though stocks in Europe are struggling. 
  2. The Chicago Board Options Exchange (CBOE) saw 697,241 call contracts traded on Friday, compared to 584,639 put contracts. The resultant single-session equity put/call ratio rose to 0.84, while the 21-day moving average edged up to 0.75.
  3. After hitting an annual low last week, AAPL is getting a major boost this morning, thanks to news Warren Buffett's Berkshire Hathaway Inc. (NYSE:BRK.A) purchased 9.8 million shares in the company. So far, AAPL has gained 2% in electronic trading. 
  4. Gannett Co Inc (NYSE:GCI) has raised its offer for fellow newspaper firm Tribune Publishing Co (NYSE:TPUB) to $15 per share from the $12.25-per-share offer it initially announced late last month. TPUB has added another 22.8% in pre-market action.  
  5. While speculation swirls whether it's interested in buying another healthcare companyPfizer Inc. (NYSE:PFE) announced this morning it's buying drugmaker Anacor Pharmaceuticals Inc (NASDAQ:ANAC) for $4.5 billion -- or $99.25 per share. Including debt, the deal is valued at $5.2 billion. ANAC closed at $64.03 on Friday, and has gained almost 54% ahead of the bell. 

Buzz Stocks May 16

Earnings and Economic Data

The week kicks off with the NAHB housing market index and Treasury International Capital (TIC) data. Minneapolis Fed President Neel Kashkari will give a speech after the close. The earnings schedule is relatively quiet on Monday. To see what else is coming up on this week's schedule, click here

Don't miss the market's next move! Sign up now for Schaeffer's Midday Market Check



These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!


Common mistakes options traders make


Special Offers from Schaeffer's Trading Partners